The secret behind this "Mr Mulally said, was to reduce the number of brands in the company's portfolio and to concentrate on the core Ford marque. A more limited range of models with more common parts is now being rolled out globally".
To back up the strategy, Ford also borrowed 15bn pounds before the credit crunch-which was the best time- for restructuring and to develop new models.
Ford is growing around the world and so now they want to grow in the UK as well. "Mr Mulally was upbeat about his British operations, having recently confirmed £1.5 billion of investment over five years, partly underwritten by Government loan guarantees".
At least there are some signs of growth in the industries around the world if not in the USA.
I was wondering if the 120 jobs to be added by Ford are of the managerial level or the factory worker level. 120 jobs does not sound much given the current unemployment rate in the European Union.
ReplyDeleteI would also hope that because Ford is trying to go international, it doesn't affect the jobs in America. As of right now, Detroit, which is considered the Motor City, is not doing too well. The population in the city is decreasing as a direct result to people losing jobs. The auto industry is a huge part of our economy and jobs in the US. I just hope that more jobs don't continue to go over seas because many people would be out of work.
ReplyDeleteIf the government created incentives for manufacturing companies to stay within the US perhaps these jobs will not be lost.
ReplyDeleteIt is surprising though that these manufacturing companies are still moving to other countries even when unemployment levels are high in the US because wages should be low. Is it the case that wages are even lower in other countries?
I think its not bad that Ford expanded its operations and went overseas. While this doesn't affect GDP this will affect US GNP. there will be no job losses because Ford doesn't close their American office. On the other hand I wonder why they went abroad.
ReplyDeleteWith Ford expanding its work force its shows the strength behind Fords plan to restructure the company increasing its efficiency and streamlining its production process. Ford enters the 4th quarter of 2010 as a more flexible company ready to hire and growth as demand increases. This really shows how a company can take advantage of a recession and gain access to cheap capital to build a better company for the long term, there decision are beginning to pay dividends to the economy as they begin to hire additional staff in Britain.
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